Cheap airlines face fare hike choices

Discount carriers are being forced to find ways to fit in fare hikes without scaring away customers as oil nears $140 a barrel.

NEW YORK (CNNMoney.com) — As the price of jet fuel approaches $4 a gallon, even traditionally low-cost carriers are being forced to raise fares.

Southwest Airlines had “hoped to get through 2008 without significant fare increases,” CEO Gary Kelly said Wednesday.


But he acknowledged that the airline known for its low fares will need to follow the rest of the industry to keep up with the price of oil.

CNN